share. i would say more like 12-15 cnt. dont forget: they have a very high margin, and also plenty of cash that they can play with to get another 1-2 cnt per share.but keep in mind that beating the expectation in not enough in todays market. we should get used to the fact that the summers price levels (27-32$) might not come back for a long time
I feel I need to respond to these estimates that you posted....while I would LOVE these numbers (40% sales growth), I think we need to be a bit more conservative and realistic in our observation. Even if these numbers are possible, it would be wiser to spread some out to 2001.
I look at my simple analysis as follows:
I will be conservative and leave growth at 30% although I believe it could and should be higher due to the Compaq deal which should have produced some dividends by now.
I will assume a conservative (large) increase in expenses of $1.7 million from prior quarter. During this Q most of offices are experiencing full expenses and this will be reflected. I will also assume a gross profit % of 82% which is a drop from prior quarters....again just to be conservative.
The result of the above is as follows:
increased sales of $3.3 Million thus increased gross profit of $2.7 million. Less increased expenses of $1.7 million leaves us with increased operating profit and net profit of $1 million.
This translates into approximately 5-6 cents increase in EPS for Q4. Which leaves us with between 15 and 16 cents EPS.
Again I will stress that I believe these numbers are conservative and there is some upside potential.
Please let me know what your thoughts are on the above analysis.